FAQs on Union Budget 2018

1. What is a Union Budget?

2. What is a Capital Budget?

Capital Budget consists of capital receipts and capital payments by the Government. Capital Receipt: The main items of capital receipts are loans raised by Government from public, Reserve Bank, Foreign Governments, sale of Treasury Bills, and recovery of loans granted by the Central Government to the State Governments and Union Territories and other parties. Capital Payments: It consists of capital expenditures on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by the Central Government to the State Governments and Union Territories, Government companies, Corporations and other parties.

3. What is Revenue Budget?

4. What are the sources of Tax Revenues?

Tax Revenues comprise of proceeds of taxes and other duties levied by the Union Government. Other receipts of Government mainly consist of interest and dividend on investments made by Government, fees and other receipts for services rendered by the Government. In every Budget, the Govt. presents the estimates of revenue receipts for the next fiscal year. These estimates are shown in the Annual Financial Statement. It takes into account the effect of the proposals made in the Finance Bill. 

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5. What are revenue expenditures of Government?

6. What is Fiscal Deficit?

The difference between total revenue and total expenditure of the Government during the fiscal year is termed as fiscal deficit. This deficit is met by the Government through borrowings.

7. What is the Finance Bill?

The Finance Bill is a Money Bill as defined in Article 110 of the Constitution of India. It is presented in view of Article 110(1)(a) of the Constitution which provides for the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget.  The Finance Bill is supplemented by a Memorandum which contains explanations of the provisions included in it. 

8. What is the effective date of Finance Bill?

The provisions of the Finance Bill are made applicable only when the Bill is passed by the both the houses of the Parliament and it is assented to by the President of India. Each proposal in the Finance Bill might have different effective date of applicability which is mentioned in the Finance Bill itself. Generally, the amendments by the Finance Acts are made applicable from the first day of the next financial year.

9. What are the Acts which are regulated by the Finance Bill?

The Acts amended through the Finance Bill can be categorized into Direct Taxes, Indirect Taxes and Miscellaneous. The Income Tax Act, 1961 comes under Direct Taxes. Customs Act, 1962, The Customs Tariff Act, 1975, GST Acts come under Indirect Taxes and other Acts such as The Reserve Bank of India Act, 1934, The Securities Contracts (Regulation) Act, 1956, and The SEBI Act, 1992, etc., come under Miscellaneous Chapter.